Research On The Risk Management Of Interday Liquidity In Jilin PSBC

Risk management of interday liquidity in commercial Banks is the importantlink of earnning profit and achieving development in the process of operationmanagement. In the daily management of Jilin PSBC, how to develop the system,manage the liquidity risk is the consideration about the safety of the Banks’ capital,also a sign of health operating.The development of world economy and the financial industry makes the riskmanagement of liquidity gradually become an important part in daily bankmanagement, risk control and management has became an important component ofbank management. In June2013"money shortage" caused by the Chinese financialindustry common tight liquidity, especially a challenge and test for commercialBanks to such as term mismatch in the process of liquidity management, capitalprovision for coverage of the indicators of risk management.PSBC deputy governorof the headquarters Xuxueming think:"investment of high interest rates, onceencounter to lower interest rates, and a massive redemptions, in the case of nomargin support, risk is very big. Commercial Banks in the process of deleveraging,liquidity risk need the attention of the commercial Banks." Leverage broughtcommercial Banks benefits,at the same time, also brought the high risk, the controlof it, is the inevitable requirement of a bank for a long time development and ofhealthy operation state.The stand or fall of liquidity management for the commercial Banks ofdeveloped countries, is essential; Likewise, in the domestic commercial Banks’ liquidity management has also been as the important topic of expanding business、enhancing and improving competitiveness and achieving enterprisebenefit, itguarantees reducing management risk and the maintenance of prestige. Liquidityneeds can be divided into the short-term, long-term, special or cyclical liquiditydemand. Risk management of interday liquidity is that commercial Banks achievethe maximization of the benefit through the reasonable allocation and accurateestimate for capital positions, reasonable arrangement of liquidity gap, to reduce theidle rate; and at the same time, have to powerful guarantee repay loans, loans,customers paying. In the process of Risk management of interday liquidity,borrowing money from the central bank, from interbank funds, stock repurchase,offering large certificates of deposit, borrowing money from the internationalfinancial market and other forms of debt is the way of capital inflows. Depositcentral bank reserves, short-term securities, run to the inter-bank lending,commercial paper and reverse repurchase securities, and other liquid assets is theway of capital outflow.PSBC should establish a risk management of liquidity adapt to the business scale,nature, complex degree. The basic elements risk management of liquidity are:structure, strategy, the improvement of the strategic and operational process, thestand or fall of identification, measurement, monitoring and control and effectivemanagement information system. Thereby, to promote risk management of interdayliquidity in Jilin PSBCand also for its good development and into the virtuous cyclein theory research. This not only has a positive meaning of risk management ofinterday liquidity line, also for the healthy development of jilin province branch ofthe other business has a certain significance.